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Barrington Research Reassumes Coverage DENTSPLY On Limited Upside

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Barrington Research reassumed coverage of DENTSPLY International Inc. (NASDAQ: XRAY), after an analyst transition. Michael Petusky and Tareq Affouri are now responsible for coverage and they issued a Market Perform rating. The firm had last rated it at Outperform (May 2014).

Although DENTSPLY is a leader in the professional dental consumables category, operating in more than 120 countries and generating roughly $3 billion in annual revenue, Petusky and Affouri think that “shares are currently trading within 10% of fair value,” after having gained about 14 percent over the past three months.

According to the report, the firm models $2.88 billion in revenue (excluding precious metal content) for 2015, and $2.93 billion for 2016.

Analysts expect gross margin expansion of 50 percent, and an 80 basis point reduction in SG&A expense (as a percentage of revenue), between 2014 and 2016.

“Key factors include the likely rationalization of manufacturing facilities, the probable discontinuation of certain lower margin products, and a cost-saving reorganization of certain facets of the company’s German lab business.”

Regarding earnings, Barrington is modeling adjusted EPS of $2.66 in 2015, and $2.84 in 2016, while anticipating a 140 basis point improvement in adjusted EBITDA margin between 2014 and 2016.

Latest Ratings for XRAY

DateFirmActionFromTo
Apr 2019Initiates Coverage OnNeutral
Mar 2019ReinstatesBuy
Mar 2019UpgradesMarket PerformOutperform

View More Analyst Ratings for XRAY
View the Latest Analyst Ratings

Posted-In: Barrington Barrington Research Michael Petusky Tareq AffouriAnalyst Color Initiation Analyst Ratings

 

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